1 / 7

I Probability Distributions

I Probability Distributions. II Security Expected Returns. E(R A ) = 12 (.30) + 10 (.40) + 8 (.30) = 3.6 + 4.0 + 2.4 = 10% E(R B ) = 14 (.30) + 20 (.40) + 26 (.30) = 4.2 + 8.0 + 7.8 = 20%.

nemo
Download Presentation

I Probability Distributions

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. I Probability Distributions II Security Expected Returns E(RA) = 12 (.30) + 10 (.40) + 8 (.30) = 3.6 + 4.0 + 2.4 = 10% E(RB) = 14 (.30) + 20 (.40) + 26 (.30) = 4.2 + 8.0 + 7.8 = 20%

  2. III Security Return Variances IV Security Return Deviations

  3. V Covariance of Security Returns VI Correlation of Security Returns

  4. VII-A Portfolio Expected Return VIII-A Portfolio Standard Deviation

  5. VII-B Portfolio Expected Return VIII-B Portfolio Standard Deviation

  6. Risk Free Security

More Related